Recently, I was talking with friends about the new stablecoin bill passed in the U.S. The consensus is: this could be the underlying logic for BTC skyrocketing to $500,000 or even $1 million in the next 10 years. Here are the core points:
1️⃣ Why did the U.S. allow stablecoins?
In one sentence: U.S. Treasury bonds are hard to sell, and financial attractiveness is declining. The U.S. has switched from the old mindset of 'containing crypto and protecting the dollar's hegemony' to a new approach of 'embracing uncertainty and solving economic dilemmas.' Traditional U.S. Treasury bonds have high thresholds that retail investors cannot afford.
The logic is simple: 1 dollar stablecoin = 1 dollar cash, but the former can bring an annualized yield of 5%-8% equivalent to U.S. Treasury bonds through on-chain markets, while the latter gets eaten away by inflation.
Which one would you choose? The answer is obvious. The Trump administration endorsed stablecoins, effectively tying them to U.S. Treasury bonds to attract retail and large capital, revitalizing the U.S. Treasury bond market. This is not just a policy loosening, but a new opportunity for global capital.
2️⃣ The biggest winner of the bill: the on-chain yield market
Holding USDT in a wallet is dead money, but investing in reliable DeFi platforms is a golden opportunity. The current on-chain stablecoin market is $250 billion, expected to reach $2 trillion by 2028. Most of this new trillion-dollar capital will likely be used by institutions to buy DeFi products anchored to U.S. Treasury bonds. How vast is the potential of the on-chain yield market?
Two major players worth noting:—
$ONDO (@OndoFinance): Backed by BlackRock, top-notch compliance, its U.S. Treasury tokenized product USDY is a money-making tool for Wall Street capital.
$PENDLE (@pendle_fi): The king of the Web3 yield market, with a TVL of $4 billion, accounting for 30% of the global yield-bearing stablecoin market flow. Through PT and YT mechanisms, it allows players to freely price, trade, and leverage, maximizing yields.
<The stablecoin bill represents a shift in U.S. financial strategy and is also a catalyst for the long-term surge of $BTC BTC.>